Document output management makes it possible for PostFinance to send out two million fewer letters per year

This feature is from 4IT Group, OutputLinks’ European Media Partner

Neither specialised knowledge nor years of training are required to create and post a letter. This, however, only holds true for low volumes. Moreover, even though this is only the last step in a long process that revolves around IT and human resources, the cost optimisation of bulk mailings is a key economic factor. Experts have shown that the labour, material and printing costs for a standard letter add up to more than 90 cents, not including postage. Even with a discounted postage rate, said costs make up approximately 60 percent of total mailing costs.



It comes as no surprise that companies take different steps to streamline their document output costs, in example through the consolidation of print jobs or by using electronic delivery. The solution to this challenge resides in modern Document Output Management systems. Customers also need to be convinced of the low-cost alternative provided by electronic delivery. PostFinance, the financial service unit of the Swiss Post, is a prime example that serves to illustrate the substantial savings potential that can be attained within the area of physical document delivery. Six million documents representing more than eight million pages must be sent to account holders at the end of each year alone. Through the implementation of sophisticated optimisation measures, it is possible to reduce the number of letters sent out by approximately 30 percent. Another important aspect is the positive environmental impact. The number of envelopes required is reduced by more than one million at the end of the year alone.

The large number of documents that still need to be delivered physically is mainly accounted for by legal requirements. For example, the Swiss tax authorities require in nearly all cantons that annual interest statements be delivered in printed form for the purpose of tax returns. Certain types of correspondence are also not allowed to be distributed in PDF format only.

“The proportion of electronic documents is definitely increasing. This trend is accelerated due to the enormous savings potential of approximately 80 percent, – says Bruno Näf, managing director of PrintSoft Switzerland – In cases where electronic delivery is not possible, companies should at least take advantage of the available potential. With its collection module, the PrintSoft solution accommodates this requirement. It works on the document level and can thus also be used as an interface between physical production and electronic delivery, while at the same time sending a copy to the archive.”

In the case of PostFinance, however, these detailed control features were not part of the initial implementation. The first step was bundling correspondence from different systems and applications.

“The goal was to send just one envelope per day and customer,” explains Beat Loosli, product manager at PostFinance. However, this requirement is not unique to the Swiss financial service provider; many companies post several letters at once. The associated distribution costs, specifically postage fees, account for 60 percent or more of total mailing costs. Individual print jobs and different systems that are site or source-specific are another cause of inefficient and therefore expensive letter production.

“Individual employees use local printers to print out correspondence. They fold the document, put it in an envelope and transmit it via interoffice mail to the post room where it is then stamped and brought to the post office,” explains Näf regarding the traditional method used. The process is costly due to the substantial amount of manual labour required to execute it. However, using an IT solution to optimise this procedure is no trivial matter. Employees are reluctant to give up the option of recovering correspondence from the post box before it has been sent out. The IT solution must therefore address this requirement if it is to be accepted.

Specific guidelines apply to the cost-effective mass production of documents; these may vary depending upon the company’s infrastructure. In general, print jobs that use the same paper and envelopes should be grouped together so that they can be produced in a more economical fashion. Continuous form paper is usually utilised if a single print job is set to exceed more than 10,000 pages. If a document consists of more than 32 pages, it is placed in a C4 envelope, otherwise it is organised into one or two C5 envelopes. If available, an additional enveloping machine may be used to this end. The various print jobs must also be sorted according to their shipping priority.

PrintSoft’s Document Output Management solution enables document consolidation and facilitates the allocation of correspondence to the appropriate production order. The solution is therefore also ideal for companies that want to entrust their document production to a professional outsourcing provider.

Dispatched in a single envelope

PrintSoft’s solution is based on a standard application that can be conveniently configured to meet the individual needs of its users. To this end, the various weekly, monthly and annual dates when documents must be printed out and dispatched may be defined. The type and quantity of paper used may also be easily configured. In the case of PostFinance, the system is set up so that documents are only consolidated when it will reduce costs.

“It is important that optimisation must not be realised at every cost,” explains Näf. With the PrintSoft solution it is therefore possible to finely tune each and every calculation factor, such as the maximum production batch, the postage configuration and other costs. The system then calculates the correct output autonomously.

The configuration used by PostFinance is designed to optimise production and shipping costs.

Nevertheless, Näf sees a great deal of untapped potential in other areas.

“If all ad hoc production jobs were performed centrally by individual employees, then the savings would be considerable,” he states, “and moreover, such documents could be easily archived.” Furthermore, PrintSoft has implemented a transparent track-and-trace system that provides the user with a convenient print job overview. According to Näf, “in order for a solution such as this one to be accepted by users, it is important that familiar processes are represented.”

The seamless integration of the solution into employees’ operational procedures is also of key importance. The type of paper used as well as fulfilment and addressing options may be selected from within the familiar office environment, thus increasing employee productivity without necessitating the installation of awkward stand-alone programmes. An effective solution provides real added value before the actual printing process is even initiated. As such, a separate address validation system ensures that the percentage of undeliverable shipments remains at a low level.

The system is also advantageous for companies with multiple locations. It is therefore possible to have the printing hub centred at the company headquarters so that print jobs from branch offices may be managed efficiently. If the different branches or departments of a company are seeking to consolidate their print jobs, they are usually in an especially good position to obtain discounts from postal service providers.

“We expect a return on investment in one to two years, at most,” reckons Näf.

As far as Bruno Näf is concerned, PostFinance’s implementation of the system is a prime example of the substantial impact incurred by efficient optimisation measures.

“The amount saved per client is not enormous, of course, but with four million PostFinance accounts, the numbers certainly add up. The ecological aspect must not be overlooked either. After all, over a million envelopes can be saved during such a busy time like the end of the year.”